SecureWorks Will Help Dell Succeed as IT Services Company: 10 Reasons Why

By Don Reisinger |
Posted 2011-01-04

SecureWorks Will Help Dell Succeed as IT Services Company: 10 Reasons Why

Dell
is well on its way to rounding out its IT management services. The company
announced on Jan. 4 that it agreed to acquire SecureWorks, which provides
managed security services. The terms were not disclosed, but the PC maker was
quick to point out that the deal will vastly improve its ability to deliver
more data security to companies around the world. As one might expect,
SecureWorks believes it can deliver the same level of appeal to companies as it
did prior to the acquisition.

Dell
hopes to close the deal with SecureWorks later this year. When it does, the
company will have yet another IT service at its disposal to improve its
standing in the enterprise, showing once and for all that it can do more than just
compete with HP in the PC market. With SecureWorks in tow, Dell is now a worrisome
enterprise competitor, and it's time for others in that market to realize
that.

Read
on to find out why SecureWorks will help Dell and its entire operation.

1.
It's a security game

In
today's corporate world, the most
important aspect of any IT decision-maker's job is maintaining security.
SecureWorks is well-positioned in that market. The company currently "processes
more than 13 billion security events" every day, and its intrusion-prevention
tools and vulnerability scanning have proven useful to thousands of clients
around the world. The company simply "gets" security; Dell will benefit heavily
from that.

2.
Dell needs a better enterprise option

Prior
to acquiring SecureWorks, Dell's enterprise offering was still a work in
progress. The company's
recent acquisition of Compellent helped, but it was the security option
that Dell needed to improve upon. With the help of SecureWorks, Dell can now
deliver a more well-rounded service to corporate customers. This should be
enough to put its competition on notice.

3.
Looking to the world

SecureWorks
made an important acquisition in 2009: It bought DNS Limited, which delivered
security services to many companies in Europe. It proved to be integral to
SecureWorks' ability to expand beyond the U.S.
and into the highly profitable European market. By acquiring SecureWorks, Dell
now gains that additional foothold in Europe, which should allow it to expand greatly
in that market.

4.
Managed security is growing

Market-research
firm Gartner recently released a study
that looked at the expected growth of managed security services in the coming
years. The company found that, in 2009, total managed security revenue in North
America hit $1.8 billion. It expects that figure to rise to $2.3 billion in
2010. Gartner noted that such growth would continue, making it clear that
managed security is on the rise. With the help of SecureWorks, Dell can build
on that growth.

Enterprises Want Integrated IT Management Services

5.
It speaks to Dell's new focus

By
acquiring SecureWorks less than a month after buying Compellent, a storage
provider that competed with 3PAR, Dell is now showing the focus of its future
business strategy. PCs and servers are still integral to its operation; tablets
and smartphones will also play a role. But the enterprise seems to be taking
center stage. And given the areas Dell has of late invested in, that could be a
good thing for its bottom line.

6.
The easiest IT management offering will win

Dell
seems committed to being a top IT-as-a-service provider, which can only be
achieved by delivering the best and easiest to use tools at the best price.
Consolidation is often panned by critics who want to see small companies get a
fair deal. But when it comes to enterprise customers, using a service such as Dell's-which
combines multiple aspects of IT management, including a full-fledged security
solution-is quite appealing.

7.
It's not the second choice

When
Dell made its bid for 3PAR, the PC
maker was met with competing offers from HP. It eventually lost the bid for
the company, forcing it to choose Compellent, which was its second choice. But
SecureWorks seems to be Dell's first choice, which should indicate that the
company knows what it's getting and knows what it wants to do with SecureWorks'
services. That should give it the upper hand it needs to compete more
effectively in the enterprise.

8.
It could help the PC business

Make
no mistake that Dell is always thinking about the impact certain deals might
have on its PC business. After all, Dell is still a PC company at heart, with everything
else second. Realizing that, by infiltrating the corporate world with
SecureWorks and its other options, the company could see more firms adopt its
PCs. The Halo Effect is very real, and it could benefit Dell quite heavily bit.

9.
Changing the balance of power?

By
making a significant play for the enterprise, Dell could be undergoing an
internal shift in the balance of power. The company's CEO,
Michael Dell, is most capable at handling the PC market-the business on which
his company was founded. But it's debatable, given Dell's recent financial
performance, whether or not the CEO is
capable of running his now multifaceted company. By acquiring Compellent and
SecureWorks, one wonders if there is a shift in focus, and, thus, in the balance
of power at Dell that's causing its recent moves. If so, it could be good for
the company.

10.
It's a battle with HP Dell might have a lot of competitors in several
different markets, but HP is the single company that the PC maker should be
most concerned about. Not only is HP tops in the PC space, but it also delivers
a multitude of enterprise solutions that have proven extremely successful. With
the help of SecureWorks, Dell is, at the very least, proving that it's willing
to do what it must to gain some ground on HP in IT services.